Excise Department Sets New Tax Initiatives to Boost Tourism and Electric Vehicle Production

Bangkok: The Excise Department has unveiled a series of tax rate changes and initiatives aimed at boosting tourism, supporting electric vehicle production, and promoting the use of antique cars.

According to Thai News Agency, the department has introduced a new tax rate for antique cars, setting it at 45%, to encourage their use during weekends and public holidays. This move is part of a broader strategy to position Thailand as a regional hub for antique car exhibitions and to stimulate the local antique car restoration industry. Antique cars, defined as being over 30 years old, will now feature license plates with black backgrounds and white letters, distinct from the standard white background and black letters.

Dr. Kullaya Tantitemit, the Director-General of the Excise Department, highlighted additional measures supporting the electric vehicle sector, aligning with government goals to transform Thailand into a hub for electric vehicle production. Since March 2022, 233,802 electric vehicles and 71,667 electric motorcycles have been registered, with 31 automakers participating in the EV3.0 initiative. The department has set a deadline of December 31, 2025, for electric vehicle manufacturers to fulfill contracts to build domestic factories, failing which they will face fines and a reduced tax rate from 8% to 2%.

The department is also taking steps to enhance the tourism sector by extending a reduction in the service establishment tax rate from 10% to 5% until December 31, 2025, resulting in increased excise system participation and revenue. The tax reduction has led to a significant rise in collected taxes, with figures reaching 199.73 million baht by August 2025.

Further initiatives include promoting community liquor production as part of Thailand's soft power policy. This has led to a 5% increase in entrepreneurs entering the system and an 8% rise in community liquor tax collection. The department plans to allow keg-packed breweries to distribute outside production facilities starting December 2025, further supporting Thai tourism.

Utilizing digital technology, the Excise Department has signed MOUs with private parcel delivery companies to curb smuggling via private parcels, resulting in increased arrests and prosecutions. In the first 11 months of fiscal year 2025, smuggling-related arrests rose by 8.69%, significantly surpassing targets.

Overall, the Excise Department has collected 489,564.14 million baht in excise tax revenue during the 11-month period ending August 31, 2025, marking a 1.61% increase from the previous year. The department aims to meet fiscal year 2025 targets set by the Ministry of Finance, projecting a total of 535,000 million baht in tax collection, a 2.17% increase from the prior year.